Glassnode described the event as one of the sharpest deleveraging episodes in Bitcoin's history.
Crypto News
Daily futures liquidations have nearly tripled during this market cycle compared to the previous one, driven by increased open interest and heavier leverage across crypto exchanges. According to a new report from Glassnode and Fasanara, average daily wipeouts have risen significantly as derivatives activity expands.
Average daily futures liquidations climbed from approximately $28 million in long positions and $15 million in shorts during the last cycle to $68 million long and $45 million short in the current cycle. The most dramatic demonstration occurred on Oct. 10 during what researchers called "Early Black Friday," when more than $640 million per hour in long positions were liquidated as Bitcoin dropped from $121,000 to $102,000.
Open interest collapsed 22% in under 12 hours, falling from $49.5 billion to $38.8 billion. Glassnode described the event as one of the sharpest deleveraging episodes in Bitcoin's history.
Futures activity has expanded considerably, with open interest reaching a record $67.9 billion. Daily trading volumes in futures markets have surged to as high as $68.9 billion in mid-October, with perpetual contracts accounting for more than 90% of activity, according to the report.
Bitcoin's spot trading volume has also doubled compared with the prior cycle, climbing into an $8 billion to $22 billion daily range. During the Oct. 10 crash, hourly spot volume spiked to $7.3 billion, more than triple recent peaks, as traders bought the dip rather than exiting the market.
The report stated that since U.S. spot exchange-traded funds launched in early 2024, Bitcoin price discovery has shifted toward the cash market while leverage has increasingly built up in futures. This shift has drawn capital into major assets, pushing Bitcoin's market share from 38.7% in late 2022 to 58.3% today.
Capital flows reflect this structural change. Monthly inflows to Bitcoin have ranged from $40 billion to $190 billion, lifting its realized capitalization to a record $1.1 trillion and bringing more than $732 billion into the network since the 2022 cycle low. This exceeds all previous cycles combined. Glassnode noted this highlights a more institutionally anchored and structurally mature market environment.
The report also examined Bitcoin's role as a settlement network, which now rivals the world's largest payment rails. Over the past 90 days, the Bitcoin network processed $6.9 trillion in transfers, surpassing volumes handled by Visa and Mastercard over the same period. Meanwhile, Bitcoin's supply is steadily shifting away from retail trading venues and into institutional hands.
Approximately 6.7 million Bitcoin is now held across ETFs, corporate balance sheets, and centralized and decentralized treasuries. Since early 2024, ETFs alone have absorbed about 1.5 million Bitcoin, while balances on centralized exchanges have declined.
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